Greek Wine Production Rises 6% After Historic Slump, Imports Now Threaten Local Industry

Greek wine production has seen a modest increase this year, rising by just over 6 percent according to data from the Department of Vine, Wine, and Alcoholic Beverages submitted to the European Commission. This uptick comes after a sharp decline of more than 35 percent in the previous production period, which marked one of the steepest drops in recent history for the country’s wine sector.

The latest figures show that wines without a Geographical Indication (GI) are leading the recovery, with production in this category expected to grow by nearly 11 percent. These non-GI wines now make up more than half of Greece’s total wine output. In contrast, wines with Geographical Indication—Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI)—account for just over a third of total production.

Despite this year’s slight rebound, long-term data reveal a persistent downward trend in Greek wine production since 1990. Industry experts attribute this ongoing decline to several factors, including the effects of climate change and the widespread abandonment of vineyards. The Central Cooperative Union of Greek Wine Products (KEOSOE) notes that official records may underestimate the extent of vineyard abandonment, as many growers have shifted to other crops without updating their status in the national Viticultural Register.

The reduction in domestic wine output has led to an increase in imports, particularly of low-cost wines from Italy. This trend is putting additional pressure on Greek producers, making it harder for them to compete both at home and abroad. The influx of imported wines is also raising concerns about the long-term sustainability and competitiveness of Greece’s wine industry.

Stelios Boutaris, president of the Greek Wine Association, recently commented on the sector’s challenges. He pointed out that while Greek wine has made significant strides in quality and international recognition, its overall scale remains small. The country’s vineyards cover about 610 square kilometers—a fraction of the size of major wine regions like Bordeaux in France. The total turnover for Greek wine, including both domestic sales and exports, is estimated at less than €400 million (about $466 million), which is smaller than some single large companies within Greece.

Boutaris also highlighted structural issues facing the industry. The average vineyard size is only about 4,000 square meters, and most winegrowers are nearing retirement age, with an average age of 58. There is little sign of younger generations entering the field in significant numbers. Complicated and outdated regulations further hinder modernization efforts within the sector.

Another challenge is financial: unlike some other European countries such as Austria and Portugal, Greece’s wine industry lacks strong self-financing mechanisms and relies heavily on European Union co-funding for international promotion. This dependence makes it difficult for Greek producers to invest in marketing and innovation on their own.

As Greek winemakers navigate these challenges, they continue to focus on improving quality and maintaining traditional practices. However, questions remain about how the sector will adapt to ongoing economic pressures, demographic changes among growers, and competition from imported wines. The future direction of Greek wine production will likely depend on policy decisions, investment in modernization, and efforts to attract new generations to viticulture.